CapVest reportedly beat out a rival private equity firm, The Blackstone Group (BGP.YY), to snap up Findus.
Findus produces and sells frozen ready meals, seafood, and vegetables. The company's main operations are in the Nordic region and France, but has a growing presence in eastern Europe.
The acquisition of Findus complements CapVest's existing portfolio - CapVest already owns Grimsby, U.K.-based Young's Bluecrest Seafood Ltd., which supplies fish and seafood from around the world. CapVest acquired Young's Bluecrest in a secondary buyout from another private equity firm, Legal & General Ventures, in 2002.
Christian Sinding, a partner at EQT Partners, said under EQT's ownership, Findus divested its non-core subsidiaries - including units in Australia, Germany, Spain, and the U.K.
Sinding said EQT decided the time was right to sell Findus as EQT has owned the business since January 2000, when it bought Findus from Swiss food and beverage producer Nestle SA (NESN.VX).
The timing is also ideal because there are currently plenty of buyers about looking to consolidate Europe's frozen food industry, he said.
EQT isn't the only seller looking to capitalize on private equity interest in Europe's fragmented frozen food sector. Anglo-Dutch Unilever PLC (UN,UL), maker of household products ranging from Dove brand soap to Lipton brand tea, is selling its frozen foods unit, reportedly valued at up to EUR2 billion. Unilever's frozen foods business trades under the Birds Eye name in the U.K.
Pittsburgh-based sauces and packaged food manufacturer H.J. Heinz Co (HNZ) meanwhile is also divesting its European seafood, vegetable, and frozen food units, which include the Weight Watchers and Linda McCartney range of ready meals. The business generates about $1.4 billion in annual sales.
Findus's net sales in 2005 were about EUR450 million, the company said.
9,000 chicks die on China farm, not bird flu-paper